Which of the following is false in respect to Non-convertible debentures ? (A) These are debt instruments carrying a fix rate of interest (B) These instruments have a maturity period of 5-9 years (C) There is a dilution

CS Executive · Financial and Strategic Management · PYQS · December 2022
Which of the following is false in respect to Non-convertible debentures ? (A) These are debt instruments carrying a fix rate of interest (B) These instruments have a maturity period of 5-9 years (C) There is a dilution of ownership when a company issue these securities (D) If interest is accumulated on them, it is to be paid by company by liquidation of its assets
(A) These are debt instruments carrying a fix rate of interest
(B) These instruments have a maturity period of 5-9 years
(C) There is a dilution of ownership when a company issue these securities
(D) If interest is accumulated on them, it is to be paid by company by liquidation of its assets

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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